STORM SIGNAL OF COMING DEPRESSION

Chronicle (Levin), 29 October 1946, Page 2

STORM SIGNAL OF COMING DEPRESSION

\V ASH1N CtTON, Oct. 27. Government ecoiioluie aiid fmaiicial liav'tf 'issile'cl ' etttrtfoiiary " a'dvic^ whicli the Associated Press interprets as a sturiii signal of a commg depression. Mr. M. T. Harle, chairman of the Federal Deposit iiiburauce Corporatiou, einbraeing- 13,52(5 iusured banks, warued tliat the banks sliould dispose of ail theii real estate e.xcept that required for tlieir own iiremises, and should exercise caution in granting loans, particularlv those secured on real estate. Mr. iiarle 's warning follows a statement by Mr. Marriner Eccles, cliairnian of the Federal lleserve JBoard, that prices of both urban real estate and i'ann' property in many areas have exceeded ie\els wnich cannot be maintained. ^lajor-General Pliilip Fleming, Federal Works Adininistrator, declared that liecause of the present infiated costs the existing 5,0U0,000,000-dollar construction programme would not provide sutlicient jobs and therefore non-l'ederal bodies should plan additional works. Statistics prepared by tlie Hepartment of Labour show tliat food prices throughout the nation rose 19.(5 per cent. during the 'three months ended September 15; when the index stood at 17-1.1 per cent. of the 1935-39 average food index. During the vear ended September 15, it climbed 24.9 per eent. and was stl per eent. above the August, 1939, ligure. The department admits that the iigures for the three montlis ended September 15 do not uielude aeeurate adjustnients for meat, beeause the shortage of supplies during the temporary de-control period prevented a satisfaetory eompilation of food prices. The rises which had occurred since the lifting of the controls will not be indexed until the November eompilation.